Emerging geopolitical tensions involving Iran, Israel and the United States are beginning to have ripple effects on the global oil market, contributing to rising fuel prices and economic pressure in Ghana.
Energy expert and policy analyst Benjamin Nsiah has called for urgent diplomatic and economic measures to cushion the country from the impact of global oil price volatility.
According to him, government must engage key institutions including the Ministry of Foreign Affairs, Ministry of Finance (Ghana) and the Ministry of Energy (Ghana) to explore alternative sources of crude oil supply and adopt proactive strategies to stabilise fuel prices.
Mr Nsiah made these remarks on the Adekyee Mu Nsem morning show on Ahotor 92.3 FM, hosted by Citizen Kofi Owusu in Accra.
He warned that the recent fuel price hikes driven by global market developments may persist, and therefore require strategic policy planning to mitigate the impact on consumers.
According to him, rising fuel prices often lead to increases in transport fares and the cost of goods and services, further worsening the economic hardship faced by citizens.
Mr Nsiah expressed concern that, similar to previous periods of tension in the Gulf region, the current geopolitical situation could push fuel prices significantly higher.
He projected that if the situation persists, the price of fuel could rise to as much as GH¢20 per litre.
To reduce the burden on citizens, he suggested that government consider reviewing some components of fuel taxes to provide relief to consumers.
“In my opinion, if government can remove or reduce some of the fuel tax components, it could create some relief for citizens who will eventually bear the burden through higher transport fares and increased prices of goods and services,” he said.
NPA Raises Fuel Price Floors
Meanwhile, the National Petroleum Authority (NPA) has increased the price floors for petroleum products for the second pricing window of March 2026, which takes effect on March 16. The move signals potential increases in pump prices across the country.
The revised minimum ex-pump prices show significant increases across petrol, diesel and liquefied petroleum gas (LPG) compared to the first pricing window of the month.
Petrol’s price floor has increased to GH¢11.57 per litre, up from GH¢10.46 per litre recorded between March 1 and March 15.
Diesel has seen a sharper increase, rising to GH¢14.35 per litre from GH¢11.42 per litre, while LPG has gone up to GH¢10.67 per kilogramme, compared to the earlier GH¢9.38 per kilogramme.
Overall, the adjustments represent increases of GH¢1.11 for petrol, GH¢2.93 for diesel and GH¢1.29 for LPG within the same month.
The new price floors indicate mounting pressure on fuel prices and may result in higher pump prices during the second pricing window of March.
The NPA explained that the price floors represent the minimum allowable selling prices under Ghana’s petroleum pricing guidelines. However, they do not reflect the final pump prices consumers pay because several cost components are not included in the price floor calculations.
These additional components include premiums charged by International Oil Trading Companies, operating margins for Bulk Import, Distribution and Export Companies, as well as margins set by individual Oil Marketing Companies and dealers.
Such costs are typically added before the final pump prices are determined at the retail level.
Analysts say the latest adjustments come at a time when global crude oil prices are rising due to renewed geopolitical tensions in the Middle East, a development that could continue to exert pressure on fuel prices in the coming months